Bristol & West loses tax tribunal appeal

Bank of Ireland subsidiary Bristol & West (B&W) has lost an upper tier tribunal appeal and will have to pay £28m corporation tax on a £91m gain. 

In April 2013, the subsidiary lost a first tier tribunal to HMRC for its attempt to take advantage of novation rules in the Finance Act 2002.

In Bristol and West v HMRC [2013] UKFTT 216, the court heard how B&W transferred interest rate swaps from Bristol & West to another of its subsidiaries, Bank of Ireland Business Finance (BIBF).

In August 2003, B&W novated 220 interest rate swaps to BIBF in consideration of a payment to B&W of £91m to secure a tax advantage.

The bank believed...

Continued...

» Register now

The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.

Registration is FREE and allows you to view all content, ask questions, comment and much more.

Comments

Hard to follow?

the_Poacher | | Permalink

Are there some typing and other mistakes in this article - From the para beginning "The tribunal examined.." It's hard to follow from this point

Julian Stafford's picture

I agree

Julian Stafford | | Permalink

Yes it's very poor. AccountingWeb - any comments?